To help you better understand what a Credit Union is I will relate it to something familiar, such as a bank. The founders of banks are usually required to invest thousands (or millions) of dollars which represents shares/stock/capital, to help start their institution. A banks Board of Directors comprise of it's management team(actual employees) and Investors. If you successfully make it pass the application process and credit check, you will be allowed to deposit your money into a Bank. Because Bank Investors have capital requirements, they generally expect to receive income or capital gains from the bank's profits, while the members are paid interest on their deposits at a stressed rate.

However, Credit Unions are nonprofit institutions owned by the members with no influences or pressure from outside stockholders. The credit unions Board of Directors consist of volunteer members, that's right, if you are a member of a credit union, if the majority has voted, you could be the next volunteer chairman of your credit union. To be eligible for membership there are a few requirements and catches. First the requirements, the Federal and state laws required that members be considered a person of good character who would agree to purchase at least one $5.00 share in the proposed credit union, in other words a minimum balance of $5.00 is required to establish/maintain membership. Now the catch, credit unions have been limited to serving individuals united by a "common bond," such as employees of a particular factor, or members of a union, a church, or residents of a small town. In addition, credit union offer service to the families of their current members. You may be able to join a credit union in which your brother, sister, parents, or other relative belongs. Now for the good news, because of the membership requirements, the members therefore become the investors and are paid quarterly dividends, which are generally higher than the interest rates paid by banks on customer checking and/or savings accounts.

Both banks and credit unions face financial examinations from their operating state. Some of the popular banking regulatory agencies consist of the Federal Deposit Insurance Corporation (FDIC), or the Office of the Comptroller of the Currency (OCC). Credit unions are generally regulated by the National Credit Union Administration(NCUA). Both are insured, banks are insured by the FDIC and credit unions are insured by the NCUA.

Now the services,

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